Nigeria's acting president approves $31 bln budget

ABUJA (Reuters) - Nigeria’s acting president on Thursday signed into law a 4.6 trillion naira budget for 2010, with more than a third earmarked for the development of roads, power and the oil-rich Niger Delta.

The budget increases expenditure by 50 percent from last year as Nigeria tries to spend its way out of a downturn, but it also risks pushing the OPEC member to a budget deficit of more than 5 percent.

“It is with a deep sense of responsibility that I sign the 2010 budget for the acceleration of development in our country,” Jonathan said at a signing ceremony in the capital Abuja.

Analysts have welcomed the government’s move to boost the economy but cautioned the quality of spending would be key, given Nigeria’s reputation for inefficient budget implementation.

“The most important thing for us is to make sure that in spending we get good value for the money spent,” said Finance Minister Olusegun Aganga.

The budget assumes an average oil price of $67 per barrel and oil production of 2.35 million barrels per day. It is based on an exchange rate at 150 naira to the dollar, an inflation rate of 11.2 percent and growth of 5.47 percent.